The world we work and socialize in has changed dramatically, with cloud, mobile and social technologies defining how we interact with colleagues, clients, friends and the world at large. More and more, these technologies also are changing the way we engage with the companies we do business with — such as banks, retailers, airlines or automakers — and, just as importantly, how they engage with us.
These interactions create unpredictable ebbs and flows of connections across an array of technologies and systems. In order to handle the unprecedented volume of data we’re generating, these systems need to be reliable, economical and secure. And more and more, we’re turning to cloud computing to meet those needs.
Consider that spending on public IT cloud services, which was estimated at $47.4 billion in 2013 by research firm IDC, will more than double to $107 billion in 2017. Over that four-year period, IDC also predicts a compound annual growth rate of 23.5 percent, or five times the growth rate of the IT industry as a whole.
All of these statistics are proof that organizations and all C-suite executives are demanding more from their IT. In addition to reliability, efficiency and lower costs, they expect to take advantage of insights from increasing amounts of data to enable better business decisions and improved customer service.
Why? Organizations know that it’s the customer experience that drives business results.
These expectations demonstrate that cloud no longer is perceived as merely a less-expensive IT alternative, but as a way to foster innovation. When the right technology framework is in place, organizations can use innovative cloud technologies to jump ahead of the competition by creating more personalized connections with customers and driving competitive advantages.
Business leaders need to look at customer interactions the same way customers do, or as moments that define a relationship. Customers remember how companies treat them, so companies need access to all of their customer interactions. They need to tap back-end systems for the history of these relationships: who the customers are, what they purchased, where and when, and which offers they responded to. And they need to build analytics into customer interactions so they can understand their customers better, anticipate their needs, and respond more rapidly and individually. A personalized touch bolsters customer loyalty — and the amount of business a consumer will do with that company.
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In essence, that means infrastructure matters: the special combination of hardware, software and services required to deliver on the promise of cloud. As organizations prepare themselves for success in adopting a cloud model, there are three IT requirements for success:
1. Ensure a flexible IT environment: Organizations must have flexibility to let them embrace the new workload requirements of mobile and social applications. A hybrid cloud model not only provides that flexibility, but also allows organizations to respond quickly to support changing business needs, gain operational efficiencies and improve IT economics.
2. Build analytics-ready systems: Businesses must learn to apply the right technology at the right time for business advantage. An analytics-based environment allows companies to handle huge and unpredictable volumes of data, which can be converted into actionable insight for better, faster decisions.
3. Integrate the front and back office: Businesses need a technology platform that connects systems for engaging customers with systems that manage customer records. Many of our clients favor a hybrid cloud approach: using a private cloud for systems of record for reliability, security and efficiency in performing analytics; and using a public cloud for systems of engagement to provide a quick, responsive two-way interaction with customers.
When a company can get these key areas of cloud infrastructure right, it can adapt instantly to changing trends, provide a more valuable customer experience, and drive profitability and growth. The right IT foundation, delivered through the cloud, leads to business success.
Date: July 28, 2014